Dear Esteemed Shareholders,
Warm Greetings and good wishes to all our shareholders. As I deliver this address, I am
filled with immense pride when reflecting on GHCL's remarkable journey so far.
This year marks the 40th anniversary since the company's inception, and the growth so
far gives us a lot of insights into our achievements, and the problems we encountered and
how we overcame them.
The growth so far has been that we now have a capacity of 1.2 million MTPA tonnes of
Soda Ash and 2.25 lacs ring spindles. We are committed to increase our green energy
portfolio in our both the businesses and taken various initiatives. Additionally, we are
proud to have been certified a "Great Place to Work" for seven consecutive
years.
Dear shareholders, FY 2022-23 posed significant economic uncertainties, characterized
by overlapping crisis that impacted economies worldwide. The global economic landscape,
whatever problems they faced, high energy costs, food prices, mounting inflation rates
etc. were mostly outside India and India was very well protected relatively from these
adverse cycles of high inflation, high energy, high food price etc. The western economy -
European and American are facing economic slow-downs. However, India has still managed to
have a growth rate of 6.1% because of its good governance, digitization and impactful
policies. The world is more or less getting used to calling this to be India's decade. The
Leadership of global economy will start being driven by India and may be in a decade or
so, India will be one of top economies in terms of growth and in terms of raising income
of its people. India's tremendous growth potential also positions it as a key player in
meeting the world's increasing energy demand in the coming decades. Notably, in 2022,
India added 17,000 MW of electricity capacity, with an impressive 92% contributed by the
renewable energy sector. The Soda Ash industry will play a crucial role in fuelling
India's and the World's renewable energy sector. Soda Ash, a vital raw material for
components used in India's clean energy transition, is anticipated to experience an annual
demand increase of 6.5% to 7%, driven by the growing adoption of clean energy applications
such as solar, flue gas treatment, and lithium-ion batteries. To support India's renewable
energy targets, production must be ramped up by 2.5 - 3 lakh MT every year to meet the
rising demand.
We take immense pride in our contribution to India's growth story. During this year, we
have undertaken a massive expansion of Soda Ash capacity and doubled our RBC production
capacity. We also successfully completed the demerger of GHCL Textiles as of April 1,
2023, and they are now two distinct, sector-focused, separate operating entities. All
shareholders of GHCL, as per the record date, have received shares of GHCL Textiles
Limited in a 1:1 ratio, with plans for listing on both NSE and BSE post regulatory
approvals.
In the Textiles business, we faced initial headwinds, but as demand has started to
recover, business sentiment is expected to improve. With improved product basket
allocations, focus on customer realignment, and operational excellence, our Textile
business is optimally positioned for growth. Building on our ongoing investments to
enhance our renewable energy portfolio, we added another 20 MW last year and have plans
for an additional 15 MW expansion.
Dear Shareholders, as the Chairman of the Board of Directors of GHCL, I am thrilled to
announce our Lignite and limestone mines have received 5-star ratings from the Ministry of
Mines and have won seventeen awards in various categories. Notably, our lignite mine was
the first lignite mine in Gujarat to receive this honour. We have also achieved the Gold
award at the India Green Manufacturing Challenge by the International Research Institute
of Manufacturing (IRIM).
Looking ahead, we are enthusiastic about the opportunities that lie before us. Our
strategic roadmap includes forging key partnerships, further enhancing operational
efficiencies and staying at the forefront of technological advancements.
In conclusion, I want to express my profound appreciation for your unwavering support
and your confidence in the Company. We remain committed to transparency, open
communication, and delivering long-term
I am thrilled to announce our Lignite and limestone mines have received 5-star ratings
from the Ministry of Mines and have won seventeen awards in various categories.
value to our shareholders. Over the years, we have consistently demonstrated our
commitment through reliable pay-outs. We are pleased to announce a dividend of Rs 17.50
per share for the year, the highest ever by our company.
We are happy that our shareholders are connected with us through our various
communication channels and shareholder meetings, where we will keep you informed about our
progress and we welcome your invaluable input.
Thank you once again for your trust and commitment to our shared success. Sincerely,
Sanjay Dalmia
Chairman